An intervention strategy is being consolidated to help municipalities recoup about R26-billion owed to them, Minmec noted yesterday.

The money is owed by the private sector, households and government departments.

The Minmec, consisting of Provincial and Local Government Minister Sydney Mufamadi, deputy minister Ntombazana Botha, nine MECs responsible for local government and the South African Local Government Association (Salga) made the announcement during the wrap of its work by discussing a status report on local government transformation.

The meeting was unanimous that a lot had been achieved in the area of local government transformation in the last five years from drafting legislation later passed by Parliament, ranging from the Municipal Structures Act, the Municipal Systems Act, Disaster Management Act, the Traditional Leadership and Governance Act and the Property Rates Bill.

However, the meeting noted that municipal debt had "actually increased in the years under review, but acknowledged work done to improve the situation thus far," said Xolani Xundu, spokesperson for the Department of Provincial and Local government.

"The issue of municipal debt is receiving ongoing attention from the department and has resulted in the establishment of the Municipal Revenue Enhancement Programme, which was initiated by the Minister in May 2002".

Xundu said Mufamadi commissioned an investigation to frame and examine the issue of municipal services debt and to provide some specific recommendations on the role that can be played by the national government in addressing the issue "The programme is bearing results as evidenced by the collection of more than R1,4-billion from government departments that owed municipalities for services".

Xundu said the local government transformation process was divided into three stages, starting with the establishment phase between 2000 and 2002, following the redrawing of municipal boundaries and the December 2000 local government elections.

The meeting noted that the current phase, the consolidation phase between 2002 and 2005, was on track and achieving sustainability in this sphere of government from 2005 and beyond was within reach.

"However, it noted that limited progress has been made in the areas of Intergovernmental Relations and prioritised 2004 as the year in which the Intergovernmental Relations Bill and Framework should be finalised.

Xundu said the meeting also acknowledged the work already done in beefing up capacity in this sphere of government, with the launching of the Local Government Leadership Academy next year. – Sapa.